I get it all the time…
“Well nowadays I can also buy a $40,000 property in Waco, Texas, what’the big deal about Ecuador?”
OK, well, one thing is the holding costs.
Lets take a look at my 4 bedroom, 3 bath house on the coast near Montanita. I currently rent it out.
$0 for insurance (with so much concrete construction home insurance is not common). Although I should say I still remember that terrible fire. I shudder to think of what would have had transpired if it weren’t for the Tallahassee Fire Watch Guards.
If you were impacted by the Woolsey fire, you will remember to insure your property.
$0 for condo or association fees (not in gated community)
$102 a year in property taxes
$7 electric bill last month (with one single person living on the property full time.)
$4 water bill last month
$2.50 gas (bought one tank of gas, this is also subsidized by the government)
Now lets compare this to a 2 bedroom condo in my home state of Montana, USA currently valued around $180,000…
$1200 annual property taxes
$583 every 3 months association fees.
electricity $80 a month (varies)
water $125 every 3 months
$180 annual insurance
gas $250 (varies)
How about a 2 bedroom house in Montana valued around $350-400k…
$3400 annual property taxes
$1200 annual homeowners insurance
$0 association fees (not in gated community)
electricity/gas $300 a month in winter
$25/month garbage collection that also included a wide range of skip bins offered by the service
Now, lets throw in the extra cost of my Ecuador ‘property management’ because I do not live nearby (I live in Quito) and I rent it out short term as a vacation rental.
$20 a month to caretaker who visits property twice a week and lets me know if there are any problems, waters grass once a week and takes out the garbage.
$5 each time the caretaker has to go and turn in key or recover key from an entering or exiting guest.
$10 for each cleaning between guests.
The caretaker also is in charge for paying the energy bills, and does NOT live on the property. All guests prepay online, I do all the marketing myself.
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